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Oct 28, 2022
Medtronic Q2 2023 Earnings Report
Earnings delivered despite slower market procedure volume and supply recovery; Growth was driven by TAVR, Pacing, U.S. Core Spine, and International Diabetes.
Key Takeaways
Medtronic reported a 3% decrease in revenue, totaling $7.6 billion, but experienced a 2% increase on an organic basis. GAAP diluted EPS decreased by 67% to $0.32, while non-GAAP diluted EPS decreased by 2% to $1.30. The company has updated its guidance and anticipates organic revenue growth to accelerate in the second half of the fiscal year.
Revenue of $7.6 billion decreased 3% as reported and increased 2% organic
GAAP diluted EPS of $0.32 decreased 67%; non-GAAP diluted EPS of $1.30 decreased 2%
Company updates guidance; expects organic revenue to accelerate in second half
Second quarter U.S. revenue of $4.069 billion represented 54% of company revenue and increased 2% as reported and 1% organic.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
The company expects fiscal year 2023 second half revenue growth of 3.5% to 4.0% on an organic basis. The company now expects fiscal year 2023 diluted non-GAAP EPS in the range of $5.25 to $5.30. EPS guidance includes an estimated 18 cent negative impact from foreign currency at rates as of the beginning November.
Positive Outlook
- Expect organic revenue growth acceleration
- Second half growing faster than the first
- Driving expense reductions throughout the company
- Committed to investing appropriately for the long-term
- Allocating capital to our most promising growth drivers and executing tuck-in acquisitions
Challenges Ahead
- Slower pace of market and supply recovery
- Reducing our revenue expectations for the remainder of the year
- Negative impact from foreign currency
- Effects of cost inflation
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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